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What are the Insolvency Act Company Offences that can amount to fraud and deception by company Directors?

Fraud in anticipaton of winding up

An offence is deemed to have arisen if in the 12 months prior to commencement of winding up a Director has:

  • Concealed any of the company’s property worth £500 or more.
  • Concealed any debt due to or from the company.
  • Removed any of the company’s property worth £500 or more.
  • Concealed, destroyed or falsified any records relating to the company’s property or affairs.
  • Made a false entry in the company’s records affecting its property or affairs.
  • Omitted any of the company’s records affecting or relating to its property and affairs.
  • Disposed of any property of the company that has not been paid for.

Section 206 of the Insolvency Act 1986

Transactions in fraud of creditors

An offence is deemed to have been committed if a Director:

  • Has made any gift or transfer of the company’s property.
  • Has concealed or removed property of the company since, or within 2 months of an unsatisfied judgment or order for the payment of money obtained against the company.

Section 207 of the Insolvency Act 1986

Misconduct in course of winding up

It is an offence if when a company that is in liquidation, the Director:

  • Does not afford and enable the Liquidator to discover all of the company property and when disposed of property outside of the normal course of business.
  • Does not deliver up the company’s property to the Liquidator.
  • Does not deliver up the books and records to the Liquidator.
  • Fails to inform the Liquidator about a false debt that has been claimed by a creditor.
  • Obstructs the production of the books and records relating to the company to the Liquidator.

Section 208 of the Insolvency Act 1986

Falsification of company's books and records

It is an offence if a Director destroys or alters or falsifies the books and records of the company.

Section 209 of the Insolvency Act 1986

Material omissions from statement relating to company's affairs

It is an offence for a Director to omit significant facts from a statement of the company’s affairs.

Section 210 of the Insolvency Act 1986

False representations to creditors

It is an offence for a Director to make a false representation or other fraud to obtain creditor consent to an agreement with reference to the company’s affairs or to the winding up and is deemed to have committed such an offence if this has arisen prior to the winding up for such a purpose.

Section 211 of the Insolvency Act 1986